Instead, the P/S ratio focuses on the usage of a protocol, by tracking the total fees paid (revenue) by the users of its service. More info: https://t.co/XlHI7XPTvI
1/ Why the price to sales ratio (P/S) is a useful tool for crypto investors 👇
The price to sales ratio compares a protocol’s market cap to its revenues. A low ratio could imply that the protocol is undervalued and vice versa.
Instead, the P/S ratio focuses on the usage of a protocol, by tracking the total fees paid (revenue) by the users of its service. More info: https://t.co/XlHI7XPTvI
This transparency makes it possible to find protocols with high usage relative to market cap.
Note: Maker has gone from a high P/S ratio to #3 in a matter of months after raising the stability fees for DAI.
Also, two currently similar AMMs (Uniswap & SushiSwap) have the lowest P/S ratios.
The P/S ratio is calculated by dividing a project’s fully-diluted market cap by its annualized revenues.
The metric itself does not tell us about the growth patterns in a protocol’s market cap or revenues.
There seems to be a pretty direct correlation between the (low) P/S ratio & market cap --> revenues have been consistently high since the launch of the $UNI token.
Uniswap’s daily revenues have been consistently high during Q3-Q4 --> fluctuations in market cap have been the primary driver for changes in the P/S ratio.
There does not seem to be a direct correlation between the (low) P/S ratio and market cap.
Surges in Sushiswap’s daily revenues have trended its P/S ratio lower both during its launch and also more recently.
Compound’s market cap has been stable since the launch of $COMP. Its P/S ratio trended quickly to a low double-digit figure --> revenues spiked after the launch of its token.
Compound’s daily revenues spiked up significantly with the launch of the $COMP token and associated liquidity mining.
There seems to have been a pretty direct correlation between the P/S ratio & market cap during the early days --> revenues were low initially, but have been on an upward trend since.
Kyber’s daily revenues were relatively low in the beginning but have been on an upward trend for the past two years.
After the launch of Synthetix v2, the protocol had a relatively low market cap & high P/S ratio --> revenues were low initially, but have trended upward during the past quarter.
Synthetix’s daily revenues have been been on an upward trend during Q3-Q4, after a slower start in Q2.
Market cap of Ethereum is a long way from the highs of 2017, yet its P/S ratio is on par with leading DeFi protocols --> significant growth in revenues during the past 6 months.
Ethereum’s daily revenues have been consistently high during Q2-Q4, while its market cap has yet to catch-up with the growth of the Ethereum ecosystem.
It’s one of the first fundamentals-based indexes in the crypto market.
Source: https://t.co/ZeVImRsVAa
It shows that Compound, Uniswap, and MakerDAO currently hold the largest weightings in the index portfolio.
https://t.co/JzYpuFE0yY
More from Crypto
Out of curiosity I dug into how NFT's actually reference the media you're "buying" and my eyebrows are now orbiting the moon
Short version:
The NFT token you bought either points to a URL on the internet, or an IPFS hash. In most circumstances it references an IPFS gateway on the internet run by the startup you bought the NFT from.
Oh, and that URL is not the media. That URL is a JSON metadata file
Here's an example. This artwork is by Beeple and sold via Nifty:
https://t.co/TlJKH8kAew
The NFT token is for this JSON file hosted directly on Nifty's servers:
https://t.co/GQUaCnObvX
THAT file refers to the actual media you just "bought". Which in this case is hosted via a @cloudinary CDN, served by Nifty's servers again.
So if Nifty goes bust, your token is now worthless. It refers to nothing. This can't be changed.
"But you said some use IPFS!"
Let's look at the $65m Beeple, sold by Christies. Fancy.
https://t.co/1G9nCAdetk
That NFT token refers directly to an IPFS hash (https://t.co/QUdtdgtssH). We can take that IPFS hash and fetch the JSON metadata using a public gateway:
https://t.co/CoML7psBhF
Short version:
The NFT token you bought either points to a URL on the internet, or an IPFS hash. In most circumstances it references an IPFS gateway on the internet run by the startup you bought the NFT from.
Oh, and that URL is not the media. That URL is a JSON metadata file
Here's an example. This artwork is by Beeple and sold via Nifty:
https://t.co/TlJKH8kAew
The NFT token is for this JSON file hosted directly on Nifty's servers:
https://t.co/GQUaCnObvX
THAT file refers to the actual media you just "bought". Which in this case is hosted via a @cloudinary CDN, served by Nifty's servers again.
So if Nifty goes bust, your token is now worthless. It refers to nothing. This can't be changed.
"But you said some use IPFS!"
Let's look at the $65m Beeple, sold by Christies. Fancy.
https://t.co/1G9nCAdetk
That NFT token refers directly to an IPFS hash (https://t.co/QUdtdgtssH). We can take that IPFS hash and fetch the JSON metadata using a public gateway:
https://t.co/CoML7psBhF
I've just read one of the most lucid, wide-ranging, cross-disciplinary critiques of cryptocurrency and blockchain I've yet to encounter. 1/
It comes from David "DSHR" Rosenthal, a distinguished technologist whose past achievements including helping to develop X11 and the core technologies for Nvidia.
https://t.co/tkAMShno4k 2/
Rosenthal's critique is a transcript of a lecture he gave to Stanford's EE380 class, adapted from a December 2021 talk for an investor conference. 3/
It is a bang-up-to-date synthesis of many of the critical writings on the subject, glued together with Rosenthal's own deep technical expertise. He calls it "Can We Mitigate Cryptocurrencies' Externalities?"
The presence of "externalities" in Rosenthal's title is key. 4/
Rosenthal identifies blockchainism's core ideology as emerging from "the libertarian culture of Silicon Valley and the cypherpunks," and states that "libertarianism's attraction is based on ignoring externalities."
This is an important critique of libertarianism. 5/
It comes from David "DSHR" Rosenthal, a distinguished technologist whose past achievements including helping to develop X11 and the core technologies for Nvidia.
https://t.co/tkAMShno4k 2/
Rosenthal's critique is a transcript of a lecture he gave to Stanford's EE380 class, adapted from a December 2021 talk for an investor conference. 3/
It is a bang-up-to-date synthesis of many of the critical writings on the subject, glued together with Rosenthal's own deep technical expertise. He calls it "Can We Mitigate Cryptocurrencies' Externalities?"
The presence of "externalities" in Rosenthal's title is key. 4/
Rosenthal identifies blockchainism's core ideology as emerging from "the libertarian culture of Silicon Valley and the cypherpunks," and states that "libertarianism's attraction is based on ignoring externalities."
This is an important critique of libertarianism. 5/
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First thread of the year because I have time during MCO. As requested, a thread on the gods and spirits of Malay folk religion. Some are indigenous, some are of Indian origin, some have Islamic
Before I begin, it might be worth explaining the Malay conception of the spirit world. At its deepest level, Malay religious belief is animist. All living beings and even certain objects are said to have a soul. Natural phenomena are either controlled by or personified as spirits
Although these beings had to be respected, not all of them were powerful enough to be considered gods. Offerings would be made to the spirits that had greater influence on human life. Spells and incantations would invoke their
Two known examples of such elemental spirits that had god-like status are Raja Angin (king of the wind) and Mambang Tali Arus (spirit of river currents). There were undoubtedly many more which have been lost to time
Contact with ancient India brought the influence of Hinduism and Buddhism to SEA. What we now call Hinduism similarly developed in India out of native animism and the more formal Vedic tradition. This can be seen in the multitude of sacred animals and location-specific Hindu gods
i wonder if you can make a thread bout witchcraft in malaysia.. or list of our own local gods/deites..
— r a y a \U0001f319 (@lcvelylilith) February 20, 2020
Before I begin, it might be worth explaining the Malay conception of the spirit world. At its deepest level, Malay religious belief is animist. All living beings and even certain objects are said to have a soul. Natural phenomena are either controlled by or personified as spirits
Although these beings had to be respected, not all of them were powerful enough to be considered gods. Offerings would be made to the spirits that had greater influence on human life. Spells and incantations would invoke their
Animist ceremonies of a religious or magical nature were normally held for the purpose of divination or making a request. This would either be done at a keramat or at a shrine similar to the Thai spirit houses or Chinese roadside shrines pic.twitter.com/I1hliyi0x3
— \u2745\u1710\u170b\u1713\u170e (@uglyluhan) June 16, 2019
Two known examples of such elemental spirits that had god-like status are Raja Angin (king of the wind) and Mambang Tali Arus (spirit of river currents). There were undoubtedly many more which have been lost to time
Contact with ancient India brought the influence of Hinduism and Buddhism to SEA. What we now call Hinduism similarly developed in India out of native animism and the more formal Vedic tradition. This can be seen in the multitude of sacred animals and location-specific Hindu gods
